Please do not quote without the authors permission

Insert Table 1 here

In terms of more tangible progress since 1994, it is important to recognise that nearly 1.2 million houses have been built in South Africa, apparently representing the fastest public housing delivery rate ever achieved in the world (Daily Mail and Guardian, 23 February 2001). Though modest in standard, such housing provision clearly helps to address the very significant shortfall which exists. With regards to service provision, the number of electricity consumers doubled in six years as a result of a concerted effort to extend supplies to previously disadvantaged areas. In parallel, water and health-care provision have also increased impressively (Lester, Nel and Binns, 2000). Equally noteworthy have been recent moves to provide a basic level of free water and electricity to low-income residents.

Regrettably, however, some of the above programmes have experienced operational difficulties and there has been little job creation achieved through state intervention or encouragement. The implementation of the neo-liberal GEAR programme, has led to the phenomenon of ‘jobless growth’, with an apparent loss of a million jobs between 1990 and 2000 being one of the most unfortunate features of a generally optimistic decade (Wakeford, 2000). In South African towns and cities, whilst many affluent black people have moved to former elite white suburbs and inner-city slums have become racially mixed, the basic apartheid city model of spatially separate zones, albeit now more so on class than racial grounds, still remains. It would be difficult to argue that significant spatial integration has taken place. If anything, the siting of new low-income housing and spontaneous informal housing areas, has tended to reinforce the spatial separateness of the townships and associated areas as zones of low-income, and effective 100% black residence. At another level, a striking feature has been the ‘abandonment’ of the CBD by many white shoppers, retailers and businesses in cities such as Johannesburg, Port Elizabeth and Durban. This is linked to the phenomenal growth of regional shopping centres and business parks catering for their needs at places such as Sandton and Midrand, to the north of Johannesburg (Beavon, 2001), and the new Gateway shopping centre, to the north of Durban.
Whilst current government urban development policy is clearly progressive, well-motivated and in line with global trends, severe funding constraints and the absence of an adequate pool of skilled staff at central and lower government levels, are major factors inhibiting the effective implementation of developmental local government. We will now examine how local municipalities are interpreting and applying the development mandate which they are now charged to implement.

The new vision of urban development in South Africa

Local government in South Africa has been recognised as a distinctive ‘sphere’ of government and, through the decentralisation of authority which is taking place, has been charged with taking on a more active role in responding to development backlogs and growth opportunities. Indeed, as Pieterse (2002) observes, ‘...internationally, there is great optimism about the (potential) role of local government in addressing the intractable problems that beset South Africa …However, a lot of the optimism is untested … misplaced or, rather, premature’ (Pieterse, 2002, p.2). Whilst there are currently 284 local authorities in the country, the focus here is on the largest centres where the bulk of the population live and where the greatest developmental activity is taking place.

South Africa’s cities face tremendous challenges in their difficult quest to address the legacies of the apartheid past, to achieve growth and participate in the global economy. The greater power and freedom allocated to local governments have encouraged the larger cities, in particular, to seek defined places for themselves in the world economy through internationally accepted place-marketing and development strategies. It is now, ‘…widely accepted that cities in both developed and developing countries now have to compete globally to develop their local economies if they wish to maintain or improve their position’ (Jenkinsa and Wilkinson, 2002, p. 34). Simultaneously, in response to locally recognised and national government agendas, cities are actively seeking to address the urgent issues of poverty alleviation and inequality. Whilst cities such as Cape Town have obvious natural and economic attractions to offer international investors and tourists, and have the necessary resources to provide world class facilities such as a convention centre, high-class shopping malls and an international airport, the process of dealing with the massive challenge of urban poverty is a far more daunting prospect in which it would be difficult to argue that significant tangible progress has thus far been made.
Broad similarities in development goals and objectives exist between the major cities in South Africa. The two dominant objectives of poverty relief and economic growth characterise all vision statements and strategies, and the three cases examined below are typical of the broad approach that is being adopted. The vision of the new Cape Town Metropolitan Council, is that, ‘...Strong and sustainable economic development in the Cape Metropolitan area will depend on the ability of all stakeholders to work together to address the combined challenge of improving the Cape Metropolitan area’s global competitiveness and reducing poverty’ (CMC, 1999, p4). In order to achieve this vision, a dual strategy has been identified. In terms of achieving global competitiveness, issues such as the provision of world-class marketing and services are matched with support for business cluster, infrastructure and capacity development. Meanwhile, the parallel poverty reduction strategy seeks to provide affordable urban services and infrastructure, to integrate formerly separate areas within the conurbation, to promote community development and job creation, and to establish a ‘social safety net’ to ensure that the needs of the poorest of the poor are not overlooked (CMC, 1999). Though noble in intent, it is questionable whether adequate resources exist to meet all these ideals.
The city of Durban is seeking to pursue a similar growth and development strategy to that of Cape Town. As the Chair of the Economic Development and Planning Standing Committee commented, ‘…It is our intention to build a globally competitive region in which all communities benefit from economic growth’ (Durban Metro, 2000, p2). Specific policies in Durban include;

1. 
   promoting Durban as a competitive investment centre
   
2. 
   tourism promotion
   
3. 
   encouraging the small business sector
   
4. 
   economic regeneration of previously disadvantaged communities
   
5. 
   provision of information and advisory services (Durban Metro, 2000)
   

A similar dual focus on both socially responsible interventions and economic competitiveness is also discernible in smaller cities such as Kimberley, where its Economic Development Unit has been charged to, ‘...promote economic development through domestic and foreign direct investments, black economic empowerment and small, medium and micro enterprise’, in order to, ‘…ensure sustainable job creation, skills transfer and poverty eradication’ (Sol Plaatje Municipality, 2001, p12).

Putting ‘developmental local government’ into practice

The key challenge facing local government in South Africa in general is succinctly summarised by Bremner (2000, p.185) in his study of Johannesburg, when he points out that what is required is ‘…to reinvent a city which could claim a position in the mainstream global economy and become a city all its citizens could feel part of’.

i) Johannesburg

A survey of the post-1994 record of the major cities in South Africa reveals a number of common themes and strategies. Following the local government elections on 5 December 2000, the Greater Johannesburg area was created incorporating 13 formerly separate local administrative bodies. The new uni-city has chosen to pursue a multi-faceted development programme, known as ‘Johannesburg 2030’which incorporates economic and urban regeneration endeavours such as metropolitan marketing, privatisation, infrastructural redevelopment and inner-city renewal, a focus on new industrial development and support for the small business sector (Rwigema and Karungu, 1999; iGoli,2002, 2001; Singh, pers. com., 2001). The Johannesburg approach to development has also included facilitation of some important private sector initiatives, including support for consumption-based activities such as tourism promotion, casino and convention centre development and the hosting of major sporting events, such as the ‘All-Africa’ games in 2000, which involved the construction of world class sporting facilities and associated accommodation. In terms of addressing the apartheid legacy and poverty-related issues, a range of key projects can be identified. These include the development of the ‘Bara-link’ economic and transport corridor, linking the centre of Johannesburg to the hitherto separate black township of Soweto. Additionally, there have been various projects to promote township tourism, and concerted efforts to catalyse small and micro-enterprise development through the provision of permanent trading facilities for street hawkers and support services for emerging small businesses (Singh, pers. com., 2001). Inner city regeneration endeavours based on a series of key precincts, direct partnerships with the private sector in this regard and a range of key projects, such as support for the new Apartheid museum has been some of the city’s key projects (Bremner, 2000).

The Johannesburg CBD regeneration programme has seen the redevelopment of the inner-city road-rail transport hub, whilst the upgrading of infrastructure and the redevelopment of selected urban zones, such as the Newtown Cultural Precinct, are notable initiatives. One of the more impressive initiatives affecting Johannesburg and surrounding areas is the provincial government’s LED intervention, known as ‘Blue IQ’, the project revolves around government investment and the leveraging in of private resources into a series of mega-projects focusing on: tourism, technology, transport and high value added manufacturing which aims a make the area a ‘smart province’ (Blue IQ, 2001). The provincial investment stands at R 1.7 bn. and is likely to increase in subsequent years. The core projects are:

• 
  the Cradle of Humankind World Heritage site based on the key Sterkfontein caves palaentological site
  
• 
  Constitution Hill – site for the country’s Constitutional Court and an apartheid museum complex
  
• 
  Newtown – a massive inner-city regeneration initiative, focusing on arts and culture
  
• 
  Dinokeng –game reserve
  
• 
  the Gauteng Automotive Cluster – to boost links between existing motor manufacturers and suppliers
  
• 
  Wadeville Alrode Industrial Corridor
  
• 
  Innovation Hub – to promote high-tec research and development
  
• 
  Gautrain Rapid Rail link – to link the key cities of the region
  
• 
  Johannesburg airport and IDZ (Industrial Development Zone) – to further enhance the capacity of the city’s airport and to design an export orientated industrial estate associated with it
  

- City Deep Container Depot and IDZ – an inland dry port and industrial facility (Blue IQ, 2001).
High priority crime reduction strategies, involving more visible policing and the introduction of closed circuit television cameras, have led to a steady re-investment in the city centre following a 20 year period of disinvestment and the progressive abandonment of the CBD by many large businesses in favour of safer suburban locations, such as Sandton (Beavon, 2001; The Star, 13 May 2001). Major private-sector funded facilities have been developed outside the CBD, such as the Sandton Convention Centre and the Montecasino entertainment and hotel complex. The city has also successfully entered into ‘twinning’ arrangements with some 39 cities internationally and has become the seat of the Gauteng provincial government and the country’s Constitutional Court (Singh, pers. com., 2001). Less successful, however, have been support programmes for township economic development, where the scale of the development need, limited resources and a lack of private sector interest have restricted the overall impact of developments. At a broader level, moves to privatise service provision and set up service partnerships have upset the unions and provoked local controversies (Govender and Aiello, 1999).
ii) Cape Town

Cape Town, has worked hard to image itself as ‘one of the world’s great cities’. Whilst projects are spread across the city, the CBD is clearly the locus of significant regeneration endeavours by both the public and private sector and a key partnership, the ‘Central City Partnership’ is active in this regard (Fouldien, 2002). The value of development projects in and around the CBD currently (2002) exceeds R 5 billion. The Waterfront redevelopment and housing projects will cost R 2 billion, the international convention center to be completed in 2003 is costing approx. R0.5bn, while the station redevelopment will cost a further R 1 billion (Cape Town Partnership, in Robertson, 2002).

Probably one of the city’s most innovative interventions is the attempt to develop a major cultural and environmental tourism node at ‘Lookout Hill’ in the sprawling Khayletisha township. Equally noteworthy is the Noordhoek Valley training centre on the Cape peninsula, which provides highly successful programmes of skills training, mentorship and job placement for township residents, with the associated development of a tourist craft market adjacent to the main tourist route to Cape Point (Gretton, pers. com., 2001). Less successful appear to have been endeavours to promote the city as a centre for ‘high-tech’ industrial development.
At a broader level, support for city partnerships, business attraction, and the encouragement of regeneration in a range of Business Improvement Districts throughout the city and the building of major tourism and retail facilities, such as the ‘up-market’ Century City complex, parallel more modest efforts to better integrate the poor township areas into the city’s economic structure. Much attention has been given to township housing programmes and efforts to establish trading and small business support facilities (Siswana, pers. com., 2001). The council has actively supported private sector investment in mega-projects, through the provision of bulk infrastructural facilities, road construction and access to land. Private sector development has however been skewed in favour of the more privileged, historically white areas whilst spatial interventions in poorer areas, such as the Philippi metropolitan node and metropolitan activity corridors (Wilkinson, 2000), have not met with the same degree of success. Marks and Bezzoli (2001, p.30) conclude that, ‘while official discourse seeks the transformation of Cape Town into a more equitable and integrated city, the reality is marked by inadequate investment to alleviate the legacy of apartheid’.

iii) Durban

The city of Durban has had a comparatively longer history in the area of LED, as a result of their identification of key developmental responsibilities in the early-1990s. As in other South African cities, the dual focus on major economic interventions and support has been pursued in parallel with poverty relief measures. The city’s Long-Term Development Plan released in 2002 seeks to improve overall quality of life in the city based on the meeting of basic needs, to strengthen the economy and lastly to build skills and technology. Four key programmes have been identified within this Plan, namely to provide a:

• 
  Platform for economic growth, based on flagships projects / inner city regeneration / transport infrastructure / growth nodes / township commercial centres.
  
• 
  Service and support to key customers through business service centres
  
• 
  Sector support - tourism / manufacturing /new industry/ R and D
  
• 
  Empowerment - procurement / SMME support
  
• 
  Partnerships and capacity building (Ngwenya, 2002)
  

Particularly significant public and private initiatives include the re-development of the Point Waterfront, the development of major industrial estates and the promotion of the Gateway Shopping Centre, which cost R1.4 billion (Robbins, pers. com., 2001; Business Day, 2001). The redevelopment of 55 hectares the Point area at the cost of some R 700 million, for recreational purposes and the construction of what will be one the seven major ‘Sea-World’ facilities in the world, is clearly a key project in the urban regeneration of the city (Chetty, 2002). Support has also been given to a number of defined industrial clusters in which the city has a competitive advantage, for example, petro-chemicals and vehicle manufacture. The city also currently has the country’s major convention centre, which has hosted a series of key global events, such as the 2001 World Conference on Racism and the launch of the African Union in July 2002. Less successful appear to have been earlier efforts to promote township economic development. The failure of the private sector to respond with the same enthusiasm and levels of investment as they have towards the development of retail centres in former white areas, together with poor results achieved, have restricted the programme to a focus on the provision of small business and trading support, more especially in the CBD. One noteworthy exception is the major European Union funded Cato Manor redevelopment initiative in the city, whereby significant EU resources have been allocated to the economic and social transformation of a low-income area close to the central city. Hundreds of houses have been built, facilities upgraded and economic growth opportunities for low-income people investigated (Eising, 2002). A key challenge for Durban and other cities is, ‘…how to manage the urban process in such a way as to harness the potential of such projects to generate income for the broader public good, while still allowing private development to profit’ (Marks and Bezzoli, 2001, p.44).

Much more successful has been the promotion of Durban as a major tourism destination and the re-development of the beach-front, leading to the city becoming the country’s premier destination for domestic tourists. Since Durban is situated within seven hours driving time from Johannesburg, Pretoria and the Gauteng conurbation, this status has been relatively easy to maintain. Another important initiative has been the formation of a public-private partnership. In collaboration with the Durban Chamber of Commerce, the Metropolitan Council has formed the ‘Durban Business Partnership’ to jointly promote the development and marketing of Durban. This has led to the establishment of the ‘Development, Investment and Promotion Agency’ as a joint ‘one-stop shop’ to attract, encourage and streamline investment and development (Naidoo, pers. com., 2001).
A significant problem which was noted in discussions with authorities in Durban, which may well be replicated in other South African cities, is the very limited level of public participation in development projects which come to be dominated by business and the local state, despite rhetoric to the contrary (Maharaj and Ramballi, 1998). As a result one must question, ‘...whether the disadvantaged communities will benefit from local economic development projects’ (Maharaj and Ramballi, 1998, p131). In order to achieve true development, it is suggested, ‘...greater emphasis should be placed on policies that sustain growth through redistribution’ (Maharaj and Ramballi, 1998, p146), and which improve living standards and the capacity of community residents to become economically self-sufficient.

iv) Other Centres

In other centres, similar, but smaller, development projects have been initiated. In the majority of cases, whilst there may be a strong commitment to improving the living conditions and economic viability of the townships, it would be difficult to argue that, with the exception of housing and some infrastructural development, any really significant progress has been made in terms of job creation and economic development in these poor areas. In the Port Elizabeth (Nelson Mandela) Metropolitan Authority, for example, economic development efforts future hopes are being pinned on a major port and industrial complex to be located east of the main built-up area at Coega, an initiative which has received considerable publicity and support from national government (Mandis, pers. com., 2001). Meanwhile in East London, serious efforts to both promote the city and to encourage township economic development have been attempted, though funding and capacity constraints have impeded progress (Foster, pers. com., 2001). The Pretoria (Tshwane) Metropolitan Authority has embarked on a range of projects, including support for local business service centres (trade points), trade promotion, small business development, economic empowerment, tourism, industrial promotion, urban agriculture and place- marketing. Whilst financial and capacity constraints have undoubtedly hindered progress, selling Pretoria as the country’s Capital City, rivalling the legislative capital of Cape Town, has clearly bolstered the city’s image (Nel, pers. com., 2001; Pretoria, 1999; Tshwane, 2002). Several smaller cities, such as Kimberley (Northern Cape), Nelspruit (Mpumalanga) and Polokwane – formerly Pietersburg (Northern Province), have done remarkably well as a result of their newly (post-1994) acquired status as provincial capitals, which has led to not insignificant government investment and general improvement in city fabric and infrastructure (Rogerson, 1997). In the case of Nelspruit further growth impetus has come from its position along the Maputo Development Corridor, a major transport and development corridor linking Gauteng to Maputo in neighbouring Mozambique. Kimberley, for example, has arguably one of the most innovative township development programmes in place. Whilst business attraction and CBD improvement are still getting off the ground, local, provincial and national government resources have been accessed to embark on community-based public works programmes to upgrade infrastructure and to fund emerging business support programmes and waste recycling projects (Megalenyane, pers. com., 2001).

Some of the core themes around which urban and economic regeneration appears to be revolving in South African cities include:

- the promotion of tourism, leisure and cultural activity (Durban, Cape Town, Johannesburg).

- place-marketing (all centres)

- industrial attraction (Port Elizabeth, Durban, Pretoria)

- poverty alleviation /small business development / township development (all cities)

- infrastructure development and housing (all cities)

- the attraction of government investment (Pretoria and the provincial capitals)

- training (Cape Town)

- inner city redevelopment (Johannesburg, Durban and Cape Town).
A survey of city practice in promoting developmental local government suggests that whilst poverty alleviation, particularly in the township areas, might well be a worthy and politically appropriate focus for attention, perhaps understandably it is the ‘international standard’ interventions which appear to have achieved much greater success. Although this is probably inevitable from an economic perspective, issues of social justice, equity and redressing past injustices are naturally called into question.

Evaluating ‘developmental local government’

Even though both national and local government policy in South Africa has stressed the importance of redressing the marked social, spatial and economic imbalances bequeathed by the apartheid era and focussing on pro-poor development, there is at this point in time little firm evidence that, despite laudable achievements in terms of housing construction and electrification, there has been any significant economic development and job creation. This observation accords with Rogerson’s (2000, p.408) view that, ‘...the most distinguishing feature of South African local economic development policy is the new emphasis on a strong pro-poor focus in rhetoric, albeit if not always in practice’. In terms of market led development, clearly dramatic achievements in terms of the provision of world-class facilities are taking place in all of the cities. In many ways what is being undertaken has close parallels with the achievements of large western cities (Clarke and Gaile, 1998). Whether the disadvantaged majorities actually are deriving benefit from such investment is a moot point which, of necessity, causes questions to be raised over the practicality of current pro-poor interventions. Jenkinsa and Wilkinson (2002, p.42) observe that, ‘…overall, therefore, and in common with experience throughout the world, integration into the global economy appears to be intensifying an underlying dualistic socio-economic structure … leaving a significant part of (the) population largely marginal to the dynamics of the formal economy’ (Jenkinsa and Wilkinson, 2002, p. 43). This situation is regrettable and it is appropriate that the various causal factors for such a situation in South African cities should be investigated.

In cities such as East London and Durban, where reasonably long-term efforts have been made to improve economic conditions, issues of financial and capacity constraints feature prominently. The absence of significant budgets and/or skilled personnel in many key areas has proved to be a serious limitation. The effective absence of significant private sector investment in the poorer areas is a key issue. Whilst private sector investment has enabled the building of impressive ‘first world’ convention, retail and sporting facilities in Durban, city authorities would seem to be solely responsible for development efforts taking place in the townships. In fact, in some cities it seems that imbalances are increasing. As Turok and Watson (2001) observe in Cape Town, ‘…There is a gulf between Cape Town’s impoverished townships and its affluent areas, which appears to be widening in important respects. Development trends are tending to reinforce spatial divisions and fragmentation rather than assist urban integration’ (Turok and Watson, 2001, p. 136). The skewing of private sector investment in favour of high-income areas and high-profile investment in cities has clearly impacted on the scale and direction of investment and observable successes.
Local financial crises resulting from the persistent non-payment of service charges mainly by township residents, together with inadequate central government financial transfers, have led to severe local level economic crises. As Chipkin (2002), suggests, a key question is how can local governments encourage the private sector to invest in socially responsible activities? By 2002 the total accumulated municipal debt stood at R 22bn. (SATV, 2002) and two-thirds of local authorities could be regarded as being financially stressed (Pycroft, 2000b). In the case of Johannesburg, the accumulated municipal debt stood at R 3.5 billion in 2001 (John Singh, pers. com., 2001). Interviews with municipal staff indicated that a large number of municipalities are experiencing shortages of skilled manpower, which have been further exacerbated , ‘...as some of the more skilled and experienced municipal managers have left council employment’ (Pycroft, 2000b, p146). In addition, in the case of smaller centers, ‘many local authorities in South Africa are so weak institutionally that they cannot perform even the most basic functions of management and service delivery, and a sophisticated level of integrated and coordinated planning remains a long way off’ (Harrison, 2001, p.191). The situation is exacerbated by the reality that , ‘...the present capacity to undertake and implement LED is markedly uneven across South Africa’s metropolitan areas, secondary cities and small towns’ (Rogerson, 1997, p190). Fortunately government has come to acknowledge the very real constraints which local governments face and in 2002 a Ministerial Task Team identified the important problems of under-resourced and understaffed Local Government (SABC, 2002).
There seems to be two key issues relating to financial constraints upon local development initiatives in South Africa’s cities. First, although increasing responsibilities are being devolved to local government from national and provincial tiers of government, appropriate levels of funding have not followed. Secondly, as noted above, local government throughout South Africa faces a serious and continuing culture of non-payment for basic services which originated during the apartheid era. As a result, local authorities face massive accumulated deficits for non-payment of municipal services, such as refuse collection, rates and water supply. If meaningful local development is to be achieved, there is an urgent need to expand the tax base of local authorities to fund such initiatives (Lester, Nel and Binns, 2000). However, as Pycroft (2000b) suggests, it is important to be aware that, ‘...The constraints (which) municipalities confront as a result of the macro-economic environment are compounded by a range of structural and systems weaknesses, many inherited from the former regime’ (Pycroft, 2000b, p144). Clearly the situation is riddled with difficulties and solutions will not be easy to find.
In the period since the re-organisation of local authorities and the election of new councils in December 2000, a key priority in the new uni-cities has been to create a single, unified administration (Siswana, pers com., 2001). For example, the new Cape Town uni-city comprised nearly 30 former local authorities, each of which had a different political make-up and local development priorities. As Mmakola (2000) has commented, ‘...The major shortcoming of the uni-city model may be its tendency to become distant from the electorate. For that reason, the establishment of lower-level structures for the mobilisation of grassroots views remains a necessity’ (Mmakola, 2000, p34).
At the same time, there is understandably some considerable pressure from community-based organisations in historically-disadvantaged communities to obtain support for initiatives which they regard as vital in achieving poverty alleviation. But here there is a ‘Catch 22' situation, as Pycroft observes, since, ‘...pressure from CBOs for municipal service provision to address historical imbalances may push municipalities into increased expenditure. Not only will this bring into question the financial viability of the municipality, but excessive municipal expenditure and borrowing can contribute to macro-economic instability’ (Pycroft, 2000b, p150).
A significant, key problem which has been noted in Durban and which may well be replicated in other South African cities, is the very limited level of public participation in development projects which come to be dominated by business and the local state, despite rhetoric to the contrary (Maharaj and Ramballi, 1998). The actual influence of the poor on the development process and their benefits is there-fore questionable. Until such a situation is addressed, it would be difficult to argue that current local government interventions are able to address the very real challenges of trying to address issues of social justice. The pursuit of cost-recovery and the privatization of services are also cause for concern (Beall, Crankshaw and Parnell, 2000a) regarding the ability to achieve social justice in the city and the underlying motivations of councils when dealing with impoverished, unemployed communities who are not in receipt of social welfare support can be questioned.. Despite the noteworthy development ‘pro-poor’ policy, reality and the nature of private and public investment does not yet suggest that enough is being done to address developmental disparities and backlogs. Mounting developmental backlogs, especially amongst the poor (Pieterse, 2002), require more concerted pro-poor interventions to support the majority (Beall et al, 2000a, 2000b) and match what has already been achieved in the high-growth, business-orientated endeavours.